Best 1-Year CD Rates for November 2024: Up to 4.50% APY
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Best 1-Year CD Rates of November 2024: Over 4.50% APY

  • Some one-year CD rates are as high as 4% or more.
  • You can open a 12-month CD in just a few minutes, and many applications can be completed online.
  • One-year CDs are a safe, secure investment when you choose an account that’s FDIC-insured.
  • Savings accounts, bonds and U.S. Treasuries are some alternatives to one-year CDs.
  • Our top picks for the best 1-year CD rates: Barclays (3.75% APY), Marcus, (4.20% APY), American First Credit Union (4.25% APY), SkyOne (4.50% APY) and displayname (4.40% APY).

Compare our picks for the best 1-year CDs

Bank APY Minimum deposit Compounding frequency Early withdrawal penalty CD
Barclays 3.75% $0 Daily 90 days interest ▶︎LEARN MORE
Capital One 4.20% $0 Daily 3 months interest ▶︎LEARN MORE
Marcus 4.20% $500 Daily 90 days interest ▶︎LEARN MORE
Quontic 4.00% $500 Daily 12 months interest ▶︎LEARN MORE
American First Credit Union 4.25% $1 Daily 12 months interest ▶︎LEARN MORE
Bask Bank 4.40% $1000 Daily 3 months interest ▶︎ LEARN MORE
SkyOne 4.50% $0 Daily Based on withdrawal date ▶︎LEARN MORE
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Barclays
LEARN MORE FDIC Insured
Rates rates_last_updated
APY
3.75%
Term Length
12 months
Minimum Opening Deposit
min_deposit
Why We Like It

Editor's take

Currently, Barclays offers an online 12-month CD with a 3.75% APY, and you don’t have to meet any minimum balance requirements to earn that interest rate or open the account. You also have up to 14 days to fund your account to lock in the rates at the time you open it, which can help provide some room to make funds transfers if needed.

PROS

  • No minimum deposit required
  • Competitive interest rates
  • Initial deposit isn’t due until 14 days after account opening
  • Insured by the FDIC

CONS

  • Must maintain a balance that would earn at least 1 cent if you want the interest to post to your account
  • Early-withdrawal penalty
  • No physical branch locations

Capital One

Why we like it

Many people already bank with Capital One, making it a known quantity for those researching CDs. Having an existing account with the bank may also make it easier to fund this type of 12-month CD, which has a decent rate. Capital One also lets you choose whether you want your interest paid out monthly or at the end of the CD term.

Capital One 12-month CD: An overview

APY Minimum deposit Compounding frequency Early withdrawal penalty
4.20% $0 Daily 3 months interest

*Figures are correct as of October 2024.

▶︎ Read our Capital One CD review

Marcus

Why we like it

Marcus offers digital tools to help you plan ahead to manage your CDs as they mature, making it easier to ensure your accounts roll over in a way that meets your financial needs. While this one-year CD option does have a minimum deposit requirement, you only need $500, making it fairly accessible.

Marcus 1-year CD: An overview

APY Minimum deposit Compounding frequency Early withdrawal penalty
4.20% $500 Daily 90 days interest

*Figures are correct as of October 2024.

Quontic

Why we like it

It only takes about three minutes to open a Quontic 12-month certificate of deposit amount, and you won’t pay any monthly fees for your account. Quontic also offers a six-month CD with a 4.60% APY, so you might prefer to get a CD with a shorter term with this bank.

Quontic 12-month CD: An overview

APY Minimum deposit Compounding frequency Early withdrawal penalty
4.00% $500 Daily 12 months interest

*Figures are correct as of October 2024.

▶︎ Learn More about Quontic 12-month CD

American First Credit Union

Why we like it

American First Credit Union is insured by NCUA. With as little as 1$ as a minimum deposit, you can open a CD account easily via the Raisin platform. With an APY of 4.25%, 1.3X higher than the national average, it is a great choice for depositing your money and get earnings.

American First Credit Union 1-year CD: An overview

APY Minimum deposit Compounding frequency Early withdrawal penalty
4.25% $1 Daily 90 days interest

*Figures are correct as of October 2024.

▶︎ Learn More about American First Credit Union 12-month CD

Bask Bank

Why we like it

Bask Bank 12-month certificate is federally insured by FDIC. It offers a strong APY of 4.40% To qualify for this rate, you need a minimum deposit of 1000$. As an online bank, it offers a higher savings and CD rates than most banks.

Bask Bank 12-month CD: An overview

APY Minimum deposit Compounding frequency Early withdrawal penalty
4.40% $1000 Daily 90 days interest

*Figures are correct as of October 2024.

▶︎ Learn more about Bask Bank 12-month CD

SkyOne

Why we like it

SkyOne Federal Credit Union 12-month callable certificate is federally insured by NCUA. With as little as 1$ as a minimum deposit, you can open a SkyOne CD account easily on the Raisin platform. With a strong APY of 4.50%, 1.4X higher than the national average, this is one of the best rate in the CD market.

SkyOne callable 12-month CD: An overview

APY Minimum deposit Compounding frequency Early withdrawal penalty
4.50% $1 Daily Based on withdrawal date

*Figures are correct as of October 2024.

▶︎ Learn More about SkyOne 12-month CD

What is a 1-year CD?

A one-year CD is a certificate of deposit account with a term of 12 months. Certificate of deposit accounts are a form of savings account that offers a guaranteed rate of return over the published term, as long as you keep your money in the account for that time.

Every CD has a maturity date, this is the date when the agreed-upon term ends. A one-year CD matures after 12 months. Typically, if you withdraw any funds from your CD account before the maturity date, you’ll pay an early withdrawal penalty.

Often, the best CDs offer much higher interest rates than traditional deposit accounts.

How do 12-month CD rates work?

CD rates of all types are determined by banks based on the prime rate and other market factors. Banks also consider their own costs and what they can afford to offer, which is why many of the highest rates are offered by online banks with lower overhead costs.

A 12-month CD matures in a year, which means you can withdraw your funds at that time without any penalty.

Once the term has come to an end, you can choose to roll the funds over into another CD and earn interest again. Many banks offer an automatic roll-over process, which means your funds will automatically roll into another 12-month CD. During this process, you typically have a 10 to 14-day grace period after the maturity date to withdraw the funds without any penalty.

Pros and cons of 1-year CDs

As with any other saving option, one year CDs come with several pros and cons. We have compiled a list of these to make choosing your CD term easier.

Pros
  • CDs typically offer a higher earning option than traditional savings or checking
  • Many one-year CD rates don’t have a minimum balance requirement, making them an accessible investment option
  • CDs are typically FDIC-insured and a secure, safe investment
Cons
  • You have to keep your deposited funds in the account for 12 months to gain full benefits
  • CD accounts don’t offer the type of yield that might be possible with many other investments
  • CDs don’t offer flexible access to your savings

Current 1-year CD rates

According to the FDIC, the average deposit rate for 12-month CDs is 1.88%. Depending on your financial institution, however, you could potentially earn up to 6% on a CD.

It’s always important to read the fine print on account details before you open an account. When researching CD rates, look at the rates for various terms. While long-term CDs historically have higher averages, that’s not true in all markets. Sometimes, you might earn more with short-term investments.

How to find the best 1-year CD rates

When you want the best CD rates for a one-year term—or any CD term—shopping around is a good idea. Review account options from online and local banks, credit unions and brokerage firms.

Consider details such as:

Our top picks for CD rates

When is the best time to get a 1-year CD?

The best time to open a 12-month CD is when the rates are high and this type of investment best meets your personal financial needs.

Consider some hypothetical situations below to understand what might be a good time to get a one-year CD:

How to open a 1-year CD

You can open a one-year CD with an online or a local bank. Begin the process by researching options and comparing rates and other factors to find an account that works well for you. Once you choose an account, complete the application process in a local branch office or online.

With either option, you’ll need to:

1

Fill out an application.

In a local branch, you may simply provide information to the bank representative, who completes the forms.

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2

Gather and provide necessary documents.

At a minimum, you’ll need a government-issued photo ID. You may also need to provide proof of residency along with contact information and a residential address.

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3

Fund your CD.

Once your account is approved, you must fund your CD. Some banks have a timeline for this, such as within a few days or two weeks. How you fund your account depends on the type of bank you’re working with, but common options include cash deposits and electronic funds transfers.

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Is a 12-month CD worth it?

A one-year CD can be a worthy investment if you’re looking for a secure way to make more money on your savings. However, this option isn’t a great choice if you’ll need to access your money in the near future.

Alternatives to a 1-year CD

Before you lock your money into a one-year CD, consider a few alternative investments.

Other CD terms

Always consider your personal financial situation and whether you can truly park your cash for the term of the CD you’re looking at. If you think you might need your money sooner than a year, you could consider a shorter term such as three-month CDs or six-month CDs. If you can invest your money for longer, check to see if a two-year CD offers better returns.

Our top pick for the best three-month CD is:

Some of top picks for the best six-month CD include:

Savings accounts

You can find high-yield savings accounts with APYs of 4.00% or more, and some online banks may offer rates as high as 5.00%. An advantage of a savings account versus a CD is that you can access your funds at any time. A downside is that your rate isn’t locked in and can change.

Money market accounts

Money market accounts combine features of savings and checking accounts. They may require a higher minimum balance than regular savings accounts, though, and come with limits on check-writing capabilities and monthly withdrawals. Money market accounts are suited for individuals seeking a balance between liquidity and earning potential, as you can get a relatively high APY while maintaining easy access to your funds.

Investing accounts

If you want to invest in higher-risk but potentially higher-reward opportunities such as stocks, you’ll need an investment account. These types of savings can help you seek quick, high-yield rewards. However, they can be risky, and you can lose the money you put into the account—which isn’t the case with other options on this list.

Bonds

Bonds are debt securities. When you purchase one, you’re effectively loaning the principal to a company or government that wants to raise money. In return, the bond issuer agrees to pay back the money plus interest after a certain period of time. Bonds are a fixed, secure, and predictable way to earn a little interest. Long-term bonds are good choices for those looking to invest in the future of young children.

I bonds

These are a specific type of U.S. Treasury bond with a unique interest structure that adjusts periodically to keep up with inflation. Otherwise, they’re similar to traditional bonds.

U.S. Treasuries

This is a category of investment that’s backed by the U.S. government. They’re considered very safe, and you can choose terms that range from a few days or months to 30 years. These investments can be a good idea if you want to add a conservative, long-term and secure savings method to an existing portfolio.

FAQ: Best 1-year CD Rates

Are 1-year CD rates a good short-term investment?

A 12-month CD can be a good short-term investment for those looking for a secure, conservative option. If you open an account with a bank offering some of the best one-year CD rates at the time, you can earn a fair amount. However, as a conservative investment, CDs aren’t the highest-yield options on the market.

How much does a $10,000 CD make in a year?

A $10,000 CD with an average APY of 1.88% will earn around $188 in interest over the one-year term.

How much does a $20,000 CD make in a year?

If you invest $20,000 in a CD with the national average APY of 1.88%, you can expect to earn approximately $376 in interest over the course of a year.

How much does a $30,000 CD make in a year?

By investing $30,000 in a CD with a national average APY of 1.88%, you can expect to earn approximately $564 in interest over the one-year term.

How much does a $50,000 CD make in a year?

A $50,000 CD with the national average APY of 1.88% would earn approximately $940 in interest over the one-year term.

How much does a $100,000 CD make in a year?

If you invest $100,000 in a one-year CD with a 1.88% APY, you could earn around $1,880 in interest.

Which bank has the highest 12-month CD rate?

The best 12-month CD rates fluctuate, and various bank rates can change. However, the highest rates tend to be with online banks.

How is interest compounded with a 1-year CD?

Many banks compound interest for one-year CD accounts daily. This means interest is calculated on your daily balance, though the total amount may be added in one lump sum to your account each month. Daily compounding is beneficial because you may earn slightly more with this method than you would with monthly compounding.

Can a 1-year CD lose value?

The only way you’d end up with less than you started with when opening a one-year CD account is if you withdrew money before the maturity date. This is because you might end up losing all of your interest and some of your original principal to early withdrawal penalties.

Is a 12-month CD safe?

CDs with reputable banks and financial institutions such as Capital One CDs are considered very safe investments. This is especially true when your account is insured by the FDIC. However, the funds in your account can be put at risk by scammers or hackers. You should always take care to protect your passwords and account information to reduce such risks.

About the Author

Sarah Stasik
Sarah Stasik Personal Finance

Sarah Stasik is well versed in personal finance thanks to her previous role as a Revenue Cycle Manager for a Fortune 500 healthcare company. Using her inside knowledge and expertise, Sarah often covers topics ranging from insurance and the economics of private healthcare to personal finance and small business management.

With more than a dozen years of writing experience, Sarah has tackled niches that range from technical advances in fintech to personal budgeting challenges. She has covered topics such as insurance and the economics of private healthcare, small business management and accounting, and credit and savings. Her writing focuses on making complex or seemingly daunting financial topics more accessible and providing helpful and relevant resources for readers.

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